What the luxury car adjustment (LCA) is when a novated lease involves a luxury car, how it is calculated, and the GST and income tax treatment behind it.
A look at utes, SUVs and small cars that suit a novated lease, from the Ford Ranger and Toyota HiLux to the Mazda CX-5, Subaru Forester and Hyundai i30.
Andrew Pantelis explains how novated leasing and vehicle salary packaging relate, what else salary packaging covers and how it differs from a car loan.
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Hand it to us
Tell us who to talk to. We approach your employer, answer their questions, and only come back to you when there is a yes.
Explain it to me like I'm 5
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Headline 3
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
You
Employer
Positive
Your car
Four players. One agreement.
The ‘novated’ part just means there’s a written agreement between you, your employer and us. The financier sits behind us. You only ever deal with one team.
You
Drive the car. Pay nothing out of post-tax salary.
Your employer
Forwards a portion of your pre-tax salary to us. That's their job in 30 seconds a fortnight.
The financier
Owns the car for the lease term. They never call you.
Finance
Your lease repayments, sorted.
Insurance
Comprehensive, fleet pricing.
Fuel & charging
Visa-branded card. Any servo. Any charger.
Rego & CTP
We pay it. You forget about it.
Servicing
Logbook services at any qualified mechanic.
Vehicle procurement
We hunt the car down. Stock, demo, second-hand, anything.
Tyres
When they're due, we replace them.
Ongoing support
One direct line — for five years.
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident.
John SmithEmployment Position
The questions everyone has.
Plain-English answer here, two or three short paragraphs. Avoids hedging, uses real numbers, qualifies in fine print rather than mid-sentence.
Plain-English answer here, two or three short paragraphs. Avoids hedging, uses real numbers, qualifies in fine print rather than mid-sentence.
Plain-English answer here, two or three short paragraphs. Avoids hedging, uses real numbers, qualifies in fine print rather than mid-sentence.
Plain-English answer here, two or three short paragraphs. Avoids hedging, uses real numbers, qualifies in fine print rather than mid-sentence.
Plain-English answer here, two or three short paragraphs. Avoids hedging, uses real numbers, qualifies in fine print rather than mid-sentence.
Plain-English answer here, two or three short paragraphs. Avoids hedging, uses real numbers, qualifies in fine print rather than mid-sentence.
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.
Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Lorem ipsum dolor sit amet
Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
Consectetur adipiscing elit
Quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat
Ut enim ad minim veniam
Headline 3
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
You
Employer
Positive
Your car
Four players. One agreement.
The ‘novated’ part just means there’s a written agreement between you, your employer and us. The financier sits behind us. You only ever deal with one team.
You
Drive the car. Pay nothing out of post-tax salary.
Your employer
Forwards a portion of your pre-tax salary to us. That's their job in 30 seconds a fortnight.
The financier
Owns the car for the lease term. They never call you.
Finance
Your lease repayments, sorted.
Insurance
Comprehensive, fleet pricing.
Fuel & charging
Visa-branded card. Any servo. Any charger.
Rego & CTP
We pay it. You forget about it.
Servicing
Logbook services at any qualified mechanic.
Vehicle procurement
We hunt the car down. Stock, demo, second-hand, anything.
Tyres
When they're due, we replace them.
Ongoing support
One direct line — for five years.
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident.
John SmithEmployment Position
The questions everyone has.
Plain-English answer here, two or three short paragraphs. Avoids hedging, uses real numbers, qualifies in fine print rather than mid-sentence.
Plain-English answer here, two or three short paragraphs. Avoids hedging, uses real numbers, qualifies in fine print rather than mid-sentence.
Plain-English answer here, two or three short paragraphs. Avoids hedging, uses real numbers, qualifies in fine print rather than mid-sentence.
Plain-English answer here, two or three short paragraphs. Avoids hedging, uses real numbers, qualifies in fine print rather than mid-sentence.
Plain-English answer here, two or three short paragraphs. Avoids hedging, uses real numbers, qualifies in fine print rather than mid-sentence.
Plain-English answer here, two or three short paragraphs. Avoids hedging, uses real numbers, qualifies in fine print rather than mid-sentence.
Tell us who your employer is and who handles payroll. We contact them, explain the arrangement, and send them the one page they need to sign.
You do not have to raise it yourself, and we will not use your name if you would rather we did not.
The payroll lines, in full
For one employee on a $74,990 vehicle, your fortnightly payroll run gains exactly two lines:
Pre-tax deduction — the lease and running costs, taken before tax is calculated.
Post-tax deduction — the Employee Contribution Method amount, which is what keeps your FBT exposure at exactly $0.
We invoice you for the total fortnightly. You forward it. Nothing else about your payroll changes, and the ATO position is documented for you.
See all assumptions
Figures shown are indicative only and based on standard assumptions current as at October 2026. They do not constitute a quote or financial advice. Your actual cost depends on your income, the vehicle, your annual kilometres and the finance terms offered.
